Assemblin Q4 2019 Investor presentation, February 21, 2019 Todays - PowerPoint PPT Presentation

Assemblin Q4 2019 Investor presentation, February 21, 2019

Today´s presenters Philip Carlsson Mats Johansson CFO, Assemblin President and CEO, Assemblin

Assemblin is a complete Nordic installation and service partner Excellence in many areas of technology Strong local presence in 100 Nordic locations Financial performance, FY 2019 NET SALES SEK 10 bn EMPLOYEES 5,900 Adj. EBITA-MARGIN 5.2% CASH CONVERSION > 100 SALES PER BUSINESS AREA Sweden El 41 % Sweden VS 26 % Sweden Ventilation 14 % Norway 13 % Finland 6 % SALES PER TYPE OF ASIGNMENT • Security • Electrical • Industrial pipes • Heating and sanitation • District heating Service 38% • Ventilation • Cooling Projects 62% • Automation • Sprinklers • Data and • Electrical workshop telecom and field service

Our journey so far 12 000 6,0 10 000 5,0 8 000 4,0 6 000 3,0 4 000 2,0 2 000 1,0 0 0,0 2016 2017 2018 2019 Net sales, SEKm Adjusted EBITA margin, %

Key highlights Q4 2019: ”A strong end to a good year ” OPERATIONAL HIGHLIGHTS FINANCIAL HIGHLIGHTS • • Net sales SEK 2,856 m Accelerated Profitability Programme +10.0% - organic growth 5.7 % implemented • • Order intake SEK 2,607 m M&A: H&S companies in Norway (Arve Hagend AS, Ramsoy AS and Gjorvik V&S • +51.7% Adj EBITA SEK 204 m AS), net sales tot. SEK 260 m • Adj EBITA margin 7.2 % +2.0 pp • Improved corporate governance • Strong cash conversion framework to meet IPO-requirements • Launch of the EUR 250 m senior secured floating rate notes

Group development Net sales and adjusted EBITA margin SALES SEKm / GROWTH % ADJ EBITA SEKm / ADJ EBITA MARGIN % Key highlights in Q4 COMMENTS • Strong organic growth trend 12 000 600 +10.0% +12.3% throughout 2019 with an increasing service share 10 000 500 • More emphasis on acquisitive growth in Q4 8 000 400 • Margin increase in Q4 driven 5.2% by overall margin expansion 6 000 300 and positive effects from the 4.5% accelerated profitability 4 000 200 programme 7.2% 2 000 100 5.2% 0 0 Q4 2018 Q4 2019 FY 2018 FY 2019 Q4 2018 Q4 2019 FY 2018 FY 2019

Group development Order momentum ORDER INTAKE SEKm / GROWTH % ORDER BACKLOG SEKm / GROWTH % COMMENTS • Order intake in the fourth 12 000 9 000 19.0% 21.6% quarter in line with last year -2.9% • The order intake growth for the 8 000 10 000 full year is supported by 7 000 continued strong markets in 8 000 6 000 2019 as well as two large orders in Q1 and Q3 respectively 5 000 6 000 • Order backlog includes a very 4 000 limited service share despite 4 000 3 000 service growing more rapidly than projects 2 000 2 000 1 000 0 0 Q4 2018 Q4 2019 FY 2018 FY 2019 2018 2019

Business area development SWEDEN ASSEMBLIN EL ASSEMBLIN VS ASSEMBLIN VENT. ASSEMBLIN NORWAY ASSEMBLIN FINLAND 41% 26% 13% 14% 6% Q4 2019 FY 2019 Q4 2019 FY 2019 Q4 2019 FY 2019 Q4 2019 FY 2019 Q4 2019 FY 2019 Net sales, SEK m 1,215 4,146 730 2,629 368 1,367 381 1,285 180 598 Growth, % 17.3 15.5 15.3 10.5 -7.9 3.9 7.8 19.8 7.5 10.8 Adj EBITA, SEK m 94 222 50 139 37 73 26 70 7 12 Adj EBITA margin, % 7.8 5.4 6.9 5.3 10.0 5.3 6.8 5.4 3.9 1.9 FTE 2,827 2,796 1,512 1,508 543 544 648 704 362 357 • • • • • Strong organic Growth both org- Flat organic growth Growth both Growth with flat growth and Q4 for the full year due organic and margins and stable anic and by acquired margin improv- with significant Q4 to delays in large acquired with market ement margin projects in fourth margins growing • Focus on internal improvement quarter after Q1 write- • Market outlook stability downs • • healthy Market outlook Market outlook • healthy Strong market healthy

Consolidated Pro forma adjusted EBITDA bridge net leverage ratio COMMENTS 800 3.7x • Reported EBITDA is adjusted 700 65 to exclude the effect of 33 implementing IFRS16 600 • Items affecting comparability 500 246 discussed on next slide 153 • Pro forma acquisition 400 704 adjustments reflects an 606 300 estimate of the full twelve- 513 month impact of acquisitions 200 completed prior to Dec 2019 100 • The full year effect of the accelerated profitability 0 EBITDA - Lease Items Affecting EBITDA EBITDA - EBITDA - Pro forma programme is SEK 65 million Reported accounting Comparability excluding items Proforma Proforma Adjusted EBITDA adjustments affecting Acquisition Operational (IFRS 16) comparability adjustments improvement program

Items affecting comparability COMMENTS Items Affecting Comparability Full Year • Breakdown 2019 The total cost of the accelerated profitability programme in Q4 was SEK Items Affecting Comparability YTD Q3 31 163 million APP - initial estimate 127 Exceeding our initial estimate by SEK 36 million due to additional branch closures as well as APP - additional branch closures 15 higher costs than initially projected of SEK 21 APP - overrun 21 million • Costs for issuance of senior secured Fees - refinancing 31 notes amounted to SEK 31 million. IPO readiness 12 • IPO readiness activities mainly related Acquisition and new branch costs Q4 9 to strengthening the internal control Total Items Affecting Comparability 2019 246 environment to equity-listing standards cost SEK 12 million.

Cash flow and net debt SEK m Q4 2019 FY 2019 COMMENTS Adjusted EBITDA 228 606 • Free cash flow seasonally Change to NWC adj for non cash strong in fourth quarter 235 37 items • Full year cash conversion (free Net Capex, incl vehicle leasing capex -33 -120 cash flow over adjusted EBITA) Free Cash Flow 430 523 is 101% Cash conversion (FCF / Adj. EBITA) 210% 101% • Consolidated leverage Dec 2019 decreasing from 4.3x LTM Q3- Consolidated net lev 2,590 2019 to 3.7x due to strong Pro forma Adjusted EBITDA 704 cash flow and increasing Consolidated Net Leverage Ratio 3.7x EBITDA

To conclude: A strong end to a good year • Continued stable markets, especially in Sweden and Norway • Increased market share driven by strong organic growth, especially within service • Record high order backlog with a steady stream of small/mid projects and service assignments plus a couple of large projects • Successfully concluded accelerated profitabity programme supports competiveness and further margin expansion • Cash conversion >100 per cent

Q&A

Assemblin. So that everyday life can run smoothly. We use air, energy and water to make buildings work and make people feel comfortable. That is our mission and our driving force in all our assignments – big and small.

Our expertise and our commitment are our strengths • High technical skills • Geographical diversification – close to our customers • Coordination of installations • From design and installation to service • 5,900 dedicated employees • Proven processes and methods

1 Top 3 Nordic player 7 2 focused on regional leadership Experienced management team Specialist staff delivering value- Experienced management team Execution excellence partnering up with a supportive added technical installation and leading a value-oriented business delivered by local branch shareholder service managers and specialist staff 6 3 Solid deleveraging High sales visibility Solid deleveraging prospects from Project backlog and prospects KEY INVESTMENT HIGHLIGHTS recurring Services 5 4 Established track-record Resilient and agile Resilient and agile of improving margin and FCF business model business model

Our vision is to create sustainable and smart installations, for people and by people.